The Joint Apparel Association Forum (JAAF), the garment trade representative body, says the GSP+ trade scheme could be available for Sri Lanka for as long as mid-2010, if the government cooperates with the European Commission’s (EC) investigation.
Sri Lanka is in the list of GSP+ beneficiary countries from 2009-2011, but pending the outcome of the current investigation, on implementing human rights conventions. However, a specific date has not been set for the withdrawal of the trade scheme, if the findings are negative. This lack of clarity is causing uncertainty among the local export trades using the GSP+ to export to the EU.
Clarifying the situation, the JAAF said in a statement this week that the duration of availability of the GSP+ would depend on how well the government “engages” the EC in its investigation.
If the government is “not actively engaged” in the investigation, and the outcome is negative, the GSP+ facility will be withdrawn earlier, because the investigation itself will finish faster. Under this scenario the GSP+ is expected to be available until November-December 2009.
However, if the government “engages” the EC and provides feedback, the investigation process is expected to take more time. In this case, if the outcome of the investigation is negative, the decision to withdraw the GSP+ will come into force only by around mid-2010.
The JAAF says it is confident that the government will “engage” the EC to make sure the findings of the investigation itself is in favour of Sri Lanka and the GSP+ will not be terminated before its 3 year period.
“The JAAF is confident that the government will actively engage itself in a constructive dialogue with the Commission so that the outcome of the investigation is favourable to Sri Lanka. This will enable Sri Lanka to receive GSP + benefits not only till November / December 2009 but for the full period of three years till December 2011,” said the statement issued by the JAAF. |
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